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Getting the facts right on and consumption

Advertising for alcoholic beverages is regularly under government scrutiny. Regulating and reducing the visibility of alcoholic beverages is seen as a convincing public health policy measure to reduce alcohol-related harm. Contrary to the general belief, alcohol advertising does not create the desire to consume, therefore banning advertising will not significantly reduce overall consumption, and alcohol-related harm will not automatically decline. This document aims to provide an effective toolkit to address questions surrounding alcohol advertising and its effects on consumption.

KEY POINTS

Does advertising for • Advertising for alcoholic beverages does not create consumption alcoholic beverages • In a mature market, the purpose of marketing is to differentiate influence among individual branded products – it aims to increase market consumption? share

• There is very little scientific evidence that advertising influences young people – parental and peer approval are actually much Does alcohol more influential marketing influence • The current legislative framework, along with effective advertising self-regulation, ensures that young people under the legal young people? purchase age are not targeted by alcohol marketing

• Virtually all scientific evidence demonstrates that alcohol advertising bans have no impact on overall alcohol consumption Are advertising bans • Experience in a number of countries (Canada, ...) confirms effective to reduce their ineffectiveness consumption?

• Self-regulation does not replace statutory regulation, it complements an existing framework of law

• A balanced and proportionate policy mix ensures that advertising Why should alcohol is legal, decent, honest and truthful, while remaining free to the advertisers be trusted tax payer, dynamic, responsive and flexible to “self-regulate”? • Sectoral and company-specific codes ensure that rules are tailored

to the needs of all types of advertising, ensuring responsible advertising of alcoholic beverages

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Does advertising Does alcohol Are advertising for alcoholic Why should alcohol marketing bans effective advertisers be beverages influence to reduce trusted to influence young people? consumption? “self-regulate”? consumption?

KEY POINTS • Advertising for alcoholic beverages does not create consumption in mature markets • The purpose of marketing is to encourage competition between brands – it increases market share

The real link between advertising of What is a mature market? alcohol beverages and consumption A mature market is one which has reached a certain state of stability marked by the absence of significant Advertising of alcoholic beverages growth. does not have a significant impact The market for alcoholic beverages has been a mature on overall consumption in a market for a long time in almost all countries of the world. Demand is stable, with no signs of major mature market evolution. Most of the literature to date does not point to a The lack of evidence on a link between significant causal link between advertising and alcohol advertising and consumption consumption, let alone harmful consumption.

The determinants of individual behaviour are difficult The available literature on the influence to establish, but it is agreed that the factors are of alcohol advertising on consumption is numerous and their interrelation complex. Many inconclusive and unreliable scientific studies conclude that parental education and peer pressure are much more influential. Why? Because there are no studies of alcohol advertising which can effectively trace the “effect” of an ad from The role of advertising exposure through purchase to subsequent consumption behaviour. In a mature market, the purpose of marketing is to There is no reliable research which demonstrates a causal encourage competition between brands, not to link between advertising and consumption. Without such influence consumption of a product category. An demonstration, it is impossible to conclude legitimately increase in car advertising, for instance, will not lead to that advertising induces specific behaviours. an increase in car purchases. It will however influence Advertising is a progression through various stages. car buyers to choose between different brands and Behaviours are only influenced by advertising at the end models. of a 9-step process, beginning with exposure to the ad, and moving through paying attention to it, reacting Evidence indicates that while advertising does not favourably, comprehending it, agreeing with it, sorting increase overall consumption of alcoholic beverages, it and retaining its content, remembering it, deciding upon does have a measurable impact on market share for it and behaving in accordance with this decision. At any brands and substitution between brands. step of this tenuous process the causal chain can be broken. Most available literature is unable to Marketing and advertising create brand awareness. In a demonstrate a direct causality throughout these 9 steps. mature market such as the one for alcoholic beverages, Discussing the merits of several public health research it merely encourages competition between brands, studies, Nelson finds that ‘substantial shortcomings are which is both stimulating for the economy and found in the studies, which preclude a causal beneficial for consumer choice. interpretation’ (Nelson, 2011). 2

Does advertising Does alcohol Are advertising for alcoholic Why should alcohol marketing bans effective advertisers be beverages influence to reduce trusted to influence young people? consumption? “self-regulate”? consumption?

Inconclusive and contradicting science The literature on the influence of advertising on alcohol consumption is lengthy and mostly contradicting. For every study finding a positive correlation between advertising and alcohol consumption, there is another one contradicting the sample, the methodology or the conclusions. Virtually all econometric, cross-sectional, and case studies have found that marketing has no or only modest effects on alcohol consumption (Broadbent, 2008; Neslon and Young, 2008; Nelson, 2007; Gallet, 2007; Lariviere et al, 2000; Duffy, 1999). The majority of available studies find that advertising does not target adolescents. But beyond the question of “target” three groups of scientists have reviewed the evidence on exposure, reviewing a nearly similar series of longitudinal studies assessing whether exposure to alcohol marketing is related to youth alcohol consumption. Their findings are highly contradicting: Anderson et al. reviewed 13 studies (only two of which stem from Europe), and found that ‘twelve of the thirteen studies concluded an impact of exposure on subsequent alcohol use, including initiation of drinking and heavier drinking amongst existing drinkers’. Smith & Foxcroft reviewed a quasi-similar body of literature and observed that ‘the effect of alcohol portrayals and advertising on the drinking behaviour of young people is a matter of much debate’. This review shows a modest relationship between exposure to marketing and drinking among young people: the strength of the association varies between individual studies. Furthermore, the authors highlight that all reviewed studies ‘fall short of the current [methodological] recommendations as set out in the STROBE statement’*. Finally, this study concludes with a question: ‘Does this systematic review provide evidence that limiting alcohol advertising will have an impact on alcohol consumption amongst young people? Not directly: (...) we cannot rule out that the effects demonstrated in these studies are due to residual confounding’. Finally, Nelson reviewed a body of literature almost identical to the one reviewed by Anderson et al. and Smith & Foxcroft. He concludes that a ‘brief review demonstrates that the evidence on alcohol advertising and youth is mixed, contradictory and inconclusive’. Although ‘studies present a conflicting set of results […they] are cited in an uncritical manner’. In a 2010 comprehensive review of all the literature – not only the longitudinal ones – Nelson finds that there is evidence of a ‘selection bias in the interpretation and use of results by researchers and health policy interest groups. […]’. Most research claiming to evidence a causal link indeed rely on a “cherry picking” selection of literature – often excluding “neutral” or negative studies – the ones which do not find evidence. A main conclusion of Nelson’s meta-analysis is that ‘the effect of alcohol marketing on adolescent drinking is modest, but the evidence indicates that it may not exist at all for and other exposures’. * The STROBE statement is a standard of research aiming at strengthening the reporting of observational studies in epidemiology. It consists of a series of check-lists for each type of research. www.strobe-statement.org/ ______Anderson P., de Bruijn A., Angus K., Gordon R. and Hastings G. 2009. Impact of alcohol advertising and media exposure on adolescent alcohol use: a systematic review of longitudinal studies. Alcohol and . Smith L. A. and Foxcroft D. R. 2009. The effect of alcohol advertising, marketing and portrayal on drinking behaviour in young people: systematic review of prospective cohort studies. BMC Public Health. Nelson J. P. 2008. Reply to Siegel et al: alcohol advertising in magazines and disproportionate exposure. Contemporary Economic Policy, 26(3): 493-504. Nelson, J.P. 2010. Alcohol Marketing, Adolescent Drinking and Publication Bias in Longitudinal Studies: A Critical Survey using Meta-Analysis. Journal of Economic Surveys, published online on 23 August 2010.

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Does alcohol Does advertising Are advertising Why should alcohol for alcoholic marketing bans effective advertisers be beverages to reduce trusted to influence influence young “self-regulate”? consumption? people? consumption?

KEY POINTS • There is no scientific evidence demonstrating a positive causal link between exposure to advertising and young people’s drinking patterns • The principal influences on youth drinking are parents and peers

The impact of alcohol marketing on young The factors that influence consumer people’s drinking patterns attitudes and drinking behaviours Marketing has only a limited role The balance of evidence does not to play in shaping young people’s support a direct causal link attitudes between alcohol advertising and Studies have shown that the principal influences on youth drinking are parents and peers. Donovan’s young people’s drinking levels review of the risk factors for adolescent alcohol initiation concluded that ‘the most consistent antecedent risk factors for starting to drink in To this day, there is no conclusive scientific evidence adolescence were parental and peer approval and that links alcohol advertising to underage models for drinking.’1 consumption. At best, some researchers were able to provide evidence of a correlation between consumers’ The most recent study of ‘the effect of alcohol desire to drink and their exposure to advertising. advertising (...) drinking behaviour in young people’ concluded that ‘alcohol expectancies, family history, Most studies on the influence of advertising on young peer influence and personality characteristics may act people merely reveal an awareness of generic types of as confounders in the relationship between exposure to alcoholic beverages (part of popular culture like advertising and (...) subsequent alcohol use’2 Over 15 Champagne or ). years of peer review concur with the above (Williams, ______1995). 1. Donovan, J.E. 2004. Adolescent alcohol initiation: a review of psychosocial risk factors. Journal of Adolescent Health, 35(6):529.e7-18. 2. Smith L. A. and Foxcroft D. R. 2009. The effect of alcohol advertising, marketing and portrayal on drinking behaviour in young people: systematic review of prospective cohort studies. BMC Public Health. The rules protecting children and young people The current EU legislative framework lays down a series of provisions to protect children and young people from exposure to alcohol advertising. The EU Audiovisual Media Services Directive (2007) prohibits advertising for alcoholic beverages aimed “specifically at minors”, and the 2001 Council recommendation prohibits references to youth culture and ads featuring children or underage people. In addition to this legal framework, advertisers have voluntarily agreed to a number of detailed rules specifically for minors, including on the content of their advertising, and the media used for commercial communication. Alcohol advertisers have committed not to advertise in media “of particular appeal” to underage audience. This means that any media with more than 30% share of underage audience does not contain alcohol advertising. 4

Are advertising bans Does advertising Does alcohol Why should alcohol for alcoholic marketing effective to advertisers be beverages influence reduce alcohol trusted to influence consumption? young people? consumption? “self-regulate”?

KEY POINTS • Virtually all scientific evidence demonstrates that alcohol advertising bans have no impact on overall alcohol consumption • Experience in a number of countries (Canada, Norway...) confirms their ineffectiveness

The ineffectiveness of alcohol Alcohol consumption: Italy vs Norway advertising bans Norway has strictly no advertising for alcoholic beverages, Alcohol advertising bans are but consumption has been steadily increasing. In Italy, where ineffective to reduce alcohol alcohol advertising is permitted, consumption is decreasing: consumption

Why? Most scientific evidence to date has proven that advertising bans are ineffective to reduce primary demand for alcohol.1 An international study on broadcast bans analysed the effects of advertising bans in 17 OECD countries between 1977 and 1995.2 Results indicate that advertising bans have not led to the decrease of alcohol consumption or . Other economic and cultural factors appear Alcohol consumption, liters per population aged 15+, OECD. more important as determinants of drinking patterns. The French advertising ban: Loi Évin The Canadian advertising ban: a case-study A 1999 report by the French Parliament evaluating the effectiveness of ’s advertising ban (‘Loi Several studies of the effects of alcohol advertising bans Evin’), concluded that no effect on alcohol have been conducted in Canada, where some provinces 3 consumption could be established. The slow decline have imposed advertising bans and subsequently lifted in alcohol consumption was deemed not to be them. In Manitoba, a 7-year long advertising ban did correlated with the Loi Evin and attributed to other not reduce beer sales, which have indeed increased.1 In factors. This view is shared by the French National Association of prevention of alcoholism and addiction Saskatchewan, a study concluded that ‘the change in (ANPAA), which concedes that the effects of the law legislation regarding alcohol advertising produced neither are indeed “weak”.4 an abrupt permanent nor a gradual permanent effect on ______the pattern of total volume of sales. (…) Advertising does 1. WHO – Juhani Letho. Approaches to alcohol control not (…) affect total consumption.’2 policy – WHO Europe publications– 1995. ______2. Nelson, J.P. & Young, D.J. 2001. Do advertising bans 1. Ogborne, A.C. & Smart, R.G. 1980. Will restrictions on alcohol work? An international comparison. International Journal advertising reduce alcohol consumption? British Journal of of Advertising, 20(3), 273-296. Addiction, 75, 293-296. 3. Berger, G. et al. La Loi relative à la lutte contre le tabagisme et l'alcoolisme: rapport d'évaluation. La 2. Makowsky, C.R. & Whitehead, P.C. 1991. Advertising and Documentation Française, 106. alcohol sakes: a legal impact study. Journal of Studies on 4. The ‘Loi Evin’: a French exception, Dr. Alain Rigaud, Alcohol, 52(6), 555-567. Président Association Nationale de Prévention en Alcoologie et Addictologie (ANPAA). 5

Does advertising Does alcohol Are advertising Why should alcohol for alcoholic marketing bans effective advertisers be beverages influence influence to reduce trusted to consumption? young people? consumption? “self regulate”?

KEY POINTS • Self-regulation does not replace statutory regulation, it complements an existing framework of law • A balanced and proportionate policy mix ensures that advertising is legal, decent honest and truthful, while remaining free to the tax payer, dynamic, quick and flexible • Sectoral and company-specific codes ensure that rules are tailored to the needs of all types of comme rcial communication, ensuring responsible advertising of alcoholic beverages The current rules for alcohol advertising The rationale of advertising self- regulation Advertising for alcoholic beverages is already framed by legislation Self-regulatory is an effective means to adjust broad legal rules At European level, the regulatory framework lays down broad rules for alcohol advertising. The EU to a specific sector, company or Audiovisual Media Services (AMS) Directive (2007) type of beverage prohibits advertising for alcoholic beverages aimed Self-regulatory codes apply and complement the broad “specifically at minors” or encouraging “immoderate legal principles to the advertising of a sector, a company, consumption of such beverages”. In addition, the or a type of beverage. Codes allow the industry to 2001 Council recommendation prohibits references impose a level-playing field and sanction for breaches to to youth culture, ads featuring children or underage, commonly agreed rules (from ‘naming and shaming’ to and references to social, sexual or sporting success. statutory legal redress), while remaining free to the tax At national level, most European countries have payer, dynamic, quick and flexible. regulated advertising of alcoholic beverages. Legislation frames alcohol advertising The legislative framework is complemented by tailored self- Sectoral SR codes complement the law regulation

Most European countries complement their legislation National implementation ensures with a national self-regulatory framework for responsiveness to national/local/sector- advertising. It isn’t an alternative to legislation, rather specific needs of consumers a tailored complement by which the advertising industry polices itself. Independent monitoring shows compliance at 96% In addition, the alcoholic beverage sectors have adopted specific industry codes of conduct for their advertising. The spirits producers of Europe (CEPS), for The model is being applied throughout Europe instance, have all agreed to abide by the EFRD Common Standards for Commercial Communications, This successful model is supported by EU legislation (AMS a series of detailed rules for advertising, including Directive) and by EU policy-makers (European Commission provisions on minors, associations with social or sexual Advertising Roundtable, 2006). success, etc. 6

Bibliography Atkin, C.K. 1993. Effects Of Media Alcohol Messages On Adolescent Audiences. Adolescent Medicine, 4(3), 527-542. Barnes, J.C. & Barnes, J.G. 1979. Does Advertising Increase Alcohol Consumption? Journal of Advertising Research, 19, 19- 29. Beccaria, F. 2001. The Italian debate on alcohol advertising regulation. Contemporary Drug Problems, 28(4), 48-50. Broadbent, T. 2007. Does Advertising Create Demand? World Advertising Research Centre Report. Broadbent, T. 2008. Does Advertising Grow Markets? More evidence from the United Kingdom. International Journal of Advertising, 27, 745-770. Calfee, J.E. & Scheraga, C. 1994. The influence of advertising on alcohol consumption: a literature review and an econometric analysis of four European Nations. International Journal of Advertising, 13, 287-310. Donovan, J.E. 2004. Adolescent alcohol initiation: a review of psychosocial risk factors. Journal of Adolescent Health, 35(6), 529.e7-18. Duffy, M.H. 1995. Advertising in demand systems for alcoholic drinks and : a comparative study. Journal of Policy Modeling, 17(6), 557-77. European Advertising Standards Alliance. 1997. Advertising self-regulation in Europe. European Advertising Standards Alliance, 2nd Edition. Fisher, J.C. 1993. Advertising, alcohol consumption and abuse: a worldwide survey. Westport, CT. Greenwood Press. Furnham, A. 2002. Growing up with Advertising. London: The British Library. Gallet, C.A. 2007. The Demand for Alcohol: A Meta-Analysis of Elasticities. Australian Journal of Agricultural and Resource Economics, 51(2), 121-135. Grube, J.W. & Waiters, E. 2005. Alcohol in the media, content and effects on drinking beliefs and behaviours among youth. Adolescent Medicine Clinics, 16, 3227-343. Henry, H. 1996. Does Advertising Affect Total Market Size? Admap, 16-19. International Center for Alcohol Policies. Industry Views on Beverage Alcohol Advertising and Marketing with Special Reference to Young People. Prepared for the World Health Organization by ICAP on behalf of its sponsors. International Center for Alcohol Policies. 2001. Self-regulation of beverage alcohol advertising. ICAP Reports 9. Jernigan, D and O’Hara, J. 2005. Alcohol advertising and promotion. In Eds, 625-653. Lariviere et al, 2000. Modeling the demand for alcoholic beverages and advertising specifications. Journal of Agricultural Economics, 22(2), 147-162. Lee, B. &Tremblay, V.J. 1992. Advertising and the Market Demand for Beer. Applied Economics, 24(1), 69-76. Leppanen, K., Sullstrom, R., Suoniemi, I. 2001. Effects of economic factors on alcohol consumption in 14 European countries. Nordisk Alkohol & Narkotidkatidskrift (Nordic Studies on Alcohol and Drugs), 18, 22-34. Lintonen, T.P. & Konu, A.I. 2004. The misperceived social norm of drunkenness among early adolescents in Finland. Health Education Research, 19(1), 64-70. Luik, J.C. &Waterson, M.J. 1996. Advertising and Markets: A Collection of Seminal Papers. Oxford: NTC Publications Ltd. Makowsky, C.R. & Whitehead, P.C. 1991. Advertising and alcohol sales: a legal impact study. Journal of Studies on Alcohol, 52(6), 555-567. Milgram, G.G. 2001. Alcohol influences: the role of family and peers. In: E.Houghton and A.M. Roche, Eds, Learning about drinking. Philadelphia: Brunner-Routledge, 85-108. Nelson, J.P. 1997. Broadcast Advertising And US Demand For Alcoholic Beverages. System-Wide Estimates With Quarterly Data, Washington, DC, Federal Trade Commission. Nelson, J. 1999. Broadcast Advertising and US Demand for Alcoholic Beverages, Southern Economic Journal, 65(4), 774-790. Nelson, J.P. & Young, D.J. 2001. Do Advertising bans work? An international comparison. International Journal of Advertising, 20(3), 273-296. 7

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